Analysts’ Ideas Of The Week


equity market


  1. Our prediction for the Bank of Canada’s meeting this week.
  2. Why did gold and silver prices trend higher last week?
  3. Oil major ExxonMobil (NYSE: XOM) is entering the lithium space.
  4. The U.S. SEC has launched a lawsuit against Binance and its CEO.
  5. Positive news from a student housing company under our coverage.

FRC Top Picks

The following table shows last week’s top five performers among our Top Picks, including five junior resource companies. The top performer FPX Nickel Corp. (TSXV: FPX), was up 34.9%, amid a $16M strategic equity financing from Outokumpu (HLSE: OUT1V/MCAP: US$2.5B/a global steel producer). Our prior reports can be viewed here.

Top Five Weekly PerformersWoW Returns
FPX Nickel Corp. (FPX.V)34.9%
Contango Ore Inc. (CTGO)12.4%
South Star Battery Metals Corp. (STS.V)11.7%
Hot Chili Limited (HHLKF)9.2%
Southern Silver Exploration Corp. (SSV.V)8.8%
* Past performance is not   indicative of future performance (as of Jun 05, 2023)

Companies on our Top Picks list are up 13% on average since we initiated coverage vs -31% for the benchmark (TSXV).

AIW Top Picks
Total   Return1 Week1 mo3 mo6 mo1 yr3 yrSince launch
Special Situations (MIC)-1.6%-4.6%-22.0%-19.7%-35.0%42.2%-23.0%
Private CompaniesN/AN/AN/AN/A6.7%20.5%30.5%
Portfolio (Total)-1.8%-4.8%-11.9%-14.0%-28.3%3.7%12.9%
Benchmark (Total)0.4%-1.4%-4.5%4.8%-15.2%9.6%-31.2%
Portfolio (Annualized)-----28.3%1.2%1.3%
Benchmark (Annualized) -----15.2%3.1%-3.9%

1. Since the earliest initiating date of companies in the list of Top Picks (as of Jun 5, 2023)
2. Green (blue) indicates FRC’s picks outperformed (underperformed) the benchmark.
3. Past performance is not indicative of future performance.

Our complete list of top picks (updated weekly) can be viewed here.

Weekly Mining Commentary

Last week, global equity markets were up 0.4% on average (down 0.4% in the prior week). The S&P 500 was up 2% WoW, as the U.S. Senate approved a bill to raise the country’s debt ceiling, avoiding a federal default. We had predicted this scenario in our report last week.

Although inflation increased MoM in April, we believe the Bank of Canada will not raise the benchmark rate in its meeting this week, due to rising financial instability.

AIW Top Picks

Source: FRC/Various

As we predicted, gold and silver prices trended higher amid a weaker US$. Zinc prices fell two weeks in a row, amid a steep rise in inventories.


Valuations of gold producers were up 2% last week (down 4% in the prior week); base metal producers were up 4% last week (down 3% in the prior week).

gold producer
base metals
 Gold ProducersEV / R   (forward)EV / EBITDA (forward)EV / R (forward)EV / EBITDA (forward)
4Agnico Eagle4.
5AngloGold 2.245.772.346.16
6Kinross Gold
7Gold Fields3.226.263.386.57
9Hecla Mining4.2612.934.4013.34
13Eldorado Gold2.014.791.934.62
 Average (excl outliers)2.686.052.726.17
 Base Metal ProducersEV / R   (forward)EV / EBITDA (forward)EV / R (forward)EV / EBITDA (forward)
1BHP Group 2.795.152.875.32
2Rio Tinto2.074.382.154.62
5Anglo American1.343.601.393.81
6Teck Resources2.134.542.325.01
7First Quantum3.077.433.097.50
 Average (excl outliers)1.884.791.954.98

We are maintaining our metal price forecasts.

FRC Forecasts
Current Price2023E Long-Term (2025+)
Gold (US$/oz)$1,958$1,875$1,400
Silver (US$/oz)$23.57$22.00$18.00
Copper (US$/lb)$3.78$3.50$3.00
Zinc (US$/lb)$1.04$1.25$1.10
Nickel (US$/lb)$9.74$10.00$8.00
Source: FRC

Source: FRC

Key sector developments are listed below (positive):

– Per Bloomberg, the Democratic Republic of Congo (DRC) has replaced Peru has the second largest copper producer in the world, behind Chile. We view this as a positive development for miners/explorers operating in the DRC, as investor sentiment towards the country has been negative due to lack of transparency, security concerns, and political instability. Our reports on an advanced stage gold explorer in the DRC can be viewed here.

– Oil major ExxonMobil has entered the lithium space, by acquiring drilling rights for a lithium project in Arkansas. As mentioned in our previous reports, we are expecting majors to grow their lithium portfolios through M&A.

Updates from Resource Companies Under Coverage

Power Nickel Inc./TSXV: PNPN

PR Title

Expands a high-grade zone at Nisk (Quebec)

FRC Opinion

Positive – Continues to return high nickel grades over long intervals (25.86 m of 1.17% Ni, 0.80% Cu, 0.08% Co, 1.46 pm Pd, and 0.23 ppm Pt), expanding mineralization by 75 m along depth, and 150 m along strike. A NI 43 101-compliant resource is expected in the next quarter.

Skyharbour Resources Ltd./ TSV: SYH

PR Title

Signs an option agreement with privately-held North Shore Energy Metals for the South Falcon uranium property in the Athabasca basin

FRC Opinion

Positive – Attracted a partner to advance one of its non-core properties. North Shore can acquire an initial 80% interest for cash/shares/exploration expenses totalling $5.3M.

Argentina Lithium & Energy Corp. / TSXV: LIT

PR Title

Completes a nine-hole drill campaign at Rincon West (Argentina)

FRC Opinion

Positive – Every hole intersected attractive lithium grades. The ninth hole returned highly promising results, including 258 m of 287 to 402 mg/L. These results will be used for a maiden resource estimate.

SPC Nickel Corp. /TSXV: SPC

PR Title

Announces a $3M private placement

FRC Opinion

Positive – Proceeds will be used to advance its projects in Sudbury and Nunavut.

Churchill Resources Inc. /TSXV: CRI

PR Title

Announces a flow-through financing of up to $1M

FRC Opinion

Positive – Proceeds will be used to advance exploration at its two high-grade nickel prospects –Taylor Brook in Newfoundland and Florence Lake in Labrador.

Tartisan Nickel Corp./ CSE: TN

PR Title

Completes a high-resolution airborne survey at its Sill Lake lead-silver property in Ontario

FRC Opinion

Positive – The survey identified a northwest-southwest trending magnetic low, with potential for extending a historic resource estimate (112 Kt at 134 g/t Ag, 0.62% Pb, and 0.21% Zn) by 2 km.

Financial / Technology / Energy / Special Situations 

Global Education Communities Corp./TSX: GEC

PR Title

Takes possession of its eighth GEC® branded rental property

FRC Opinion

Positive – The company has commenced operations at its eighth property, after receiving an occupancy permit in late May. This facility can accommodate 188 tenants, with potential to generate $3.2M in revenue/year. Our most recent update includes our projections for this project.

Hemostemix Inc./ TSXV: HEM 

PR Title

Announced a $1.2M equity financing

FRC Opinion

Positive –  Funds will be used for its upcoming clinical trials.

Weekly Crypto Commentary

Prices of mainstream/popular cryptos were down 6% on average last week (up 4% in the previous week).

May 29, 2023
Binance Coin12%-11%-8%

Source: FRC/Yahoo Finance

The global MCAP of cryptos is US$1.15T, down 6% MoM, and 7% YoY.

total crypto

Source: Coinmarketcap

Companies operating in the crypto space are trading at an average EV/R of 7.3x (previously 6.5x).

EV/R of Crypto Companies

ev r of crypto

Source: S&P Capital IQ/FRC

June 5, 2023
Crypto CompaniesTickerTEV/Revenue
Banxa HoldingsTSXV: BNXAN/A
BIGG DigitalCSE: BIGG10.3
Canaan Inc. NASDAQ: CAN0.6
Coinbase GlobalNASDAQ: COIN5
Galaxy Digital HoldingsTSX: GLXYN/A
Hive Blockchain TechnologiesTSXV:HIVE2.1
Marathon Digital HoldingsNASDAQ: MARA19.5
Hut 8 Mining Corp. TSX: HUT5.7
Riot BlockchainNASDAQ: RIOT7.7

Source: S&P Capital IQ/FRC

Key sector developments are listed below (mixed):

– The U.S. SEC has launched a lawsuit against Binance and its CEO, for potentially violating securities laws and commingling customer funds with its own funds.

– Binance is cutting 1,600 jobs, or 20% of its workforce.

– Last week, crypto exchange Kraken announced that its customer deposits are up 25%, since major rivals, such as Binance and OKX, suspended operations in Canada earlier this year.

Weekly Cannabis Commentary


Cannabis Industry Performance

June 5, 2023

Source: FRC/Yahoo Finance

Last week, U.S cannabis stocks underperformed their Canadian peers (-4% vs -5%). U.S stocks had outperformed in the week prior to last. 


Canadian cannabis stocks are trading at a 23% discount on average (previously 19%) relative to their U.S. peers.

May 15, 2023May 23, 2023
Canadian CompaniesTickerTEV/RevenueTEV/EBITDATEV/RevenueTEV/EBITDA
Aurora Cannabis Inc.TSX: ACB1.2NM1.2NM
Canopy Growth Corp.TSX: WEED2.7NM2.6NM
Cronos Group Inc.TSX: CRON0.0NM0.0NM
Organigram Holdings Inc.TSX: OGI0.7NM0.6NM
Tilray Inc.NASDAQ: TLRY2.3NM2.2NM
U.S. CompaniesTickerTEV/RevenueTEV/EBITDA
Cresco   Labs Inc. OTC: CRLBF1.
Curaleaf Holdings Inc. OTC: CURLF2.214.42.315.0
Green Thumb Industries Inc.OTC: GTBIF2.
Trulieve Cannabis Corp.OTC TCNNF1.
Implied Premium (Canada vs U.S.) (Average)-19%-23%

Source: S&P Capital IQ, FRC

                                                                                       Average EV/R

average ev

Source: S&P Capital IQ, FRC

Psychedelic Industry Performance

Psychedelic stocks were up 5% on average last week (up 4% in the previous week).

June 5, 2023
Atai Life Sciences N.V.-32%2%-46%
COMPASS Pathways plc-6%1%-20%
Cybin Inc.-38%-10%-67%
Delic Holdings Corp.-88%23%-88%
GH Research25%12%21%
Mind Medicine Inc.17%-5%-76%
Numinus Wellness Inc.9%4%-35%
Seelos Therapeutics Inc.42%11%46%

Source: TMX Money, FRC

tesla survey

Disclaimers and Disclosure

The opinions expressed in this report are the true opinions of the analyst(s) about any companies and industries mentioned. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. Certain companies mentioned are covered by FRC under an issuer paid model. FRC or companies with related management, and Analysts, may hold shares/securities in some companies mentioned in this report, including HEM. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. To subscribe for real-time access to research, visit for subscription options. This report contains “forward looking” statements. Forward-looking statements regarding the Company, industry, and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company’s products/services in the marketplace; acceptance in the marketplace of the Company’s new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company’s periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward-looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated, and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

Companies Mentioned:

Kidoz Inc. (KIDZ.V), Fortune Minerals Limited (FT.TO), Sirios Resources Inc. (SOI.V), Noram Lithium Corp. (NRM.V), Kootenay Silver Inc. (KTN.V), Denarius Metals Corp./ TSXV: DSLV, Blue Sky Uranium Corp./TSXV: BSK, SPC Nickel Corp./ TSXV: SPC, Max Resource Corp./TSXV: MAX, GMV Minerals Inc./TSXV: GMV, Lexaria Bioscience Corp.